#China #Guangzhou #E Fund Management #ChiNext Index #Nikko Asset Management

Nikko AM Launches ChiNext ETF on the Singapore Exchange

On July 22, 2025, Nikko Asset Management (Nikko AM) marked a significant milestone in cross-border investment with the launch of the Amova E Fund ChiNext Index ETF on the Singapore Exchange (SGX). This initiative is part of the expanding China-Singapore ETF Link and provides overseas investors with a gateway to the growth potential of China’s innovative ChiNext market.

The ChiNext Index, which tracks emerging industries and innovative companies listed on the Shenzhen Stock Exchange (SZSE), serves as the foundation for this newly introduced ETF (ticker: CXT). The ChiNext Index is known for its focus on sectors such as next-generation information technology, new energy vehicles, and biotechnology. Notably, it includes major companies like CATL, Inovance, InnoLight, Mindray, and Sungrow. The index demonstrates remarkable growth, with its constituents achieving a compound annual growth rate of 21% in revenue and 14% in net profit since 2021.

As of mid-July, ETFs that track the ChiNext Index boasted over USD 16.3 billion in assets, with the E Fund ChiNext ETF (ticker: 159915) leading the charge with USD 12 billion in managed assets. This figure confirms the strong investor appetite for exposure to China's innovative sectors and economic advancements.

Yue Fan, Executive Vice President of E Fund, emphasized the importance of this launch in contributing to global asset allocation. "China has been opening its financial markets progressively, which is critical for overseas investors," he noted. He elaborated that the ChiNext Index, established in 2010, mirrors the driving forces behind China's new economy, covering vital sectors like semiconductors, artificial intelligence, new energy, and biopharmaceuticals.

This partnership with Nikko AM not only highlights their intent to provide diversified investment products but also symbolizes a deepening relationship between China and Singapore in financial cooperation. "With a shared vision for global market expansion, we are proud to introduce this ETF, reflecting both countries’ commitment to fostering innovation and growth in financial services," added Eleanor Seet, President and Director of Nikko Asset Management Asia Limited.

The introduction of this ETF brings the total number of ETFs under the China-Singapore ETF Link to ten since its inception in 2022. This continuous expansion represents a growing synergy between the financial markets of both nations and a more streamlined investment access process for investors across the Asia-Pacific region and beyond.

About E Fund

Established in 2001, E Fund Management is recognized as one of China’s leading mutual fund managers, overseeing over RMB 3.6 trillion (approximately USD 512 billion) as of June 30, 2025. The firm offers a diverse range of investment solutions catering to both individual and institutional clients, including pension funds, insurance companies, sovereign wealth funds, and banks. Their focus on responsible investment practices has positioned them as reliable asset managers within China.

About Nikko AM

As of March 31, 2025, Nikko Asset Management managed assets totaling USD 233.9 billion, making it one of Asia's largest asset management firms. The organization is dedicated to delivering active fund management across various asset classes and has established a significant presence in passive investment strategies, covering over 20 indices. Notably, Nikko Asset Management will transition its brand name to Amova Asset Management effective September 1, 2025.

In conclusion, the launch of the Amova E Fund ChiNext Index ETF signifies a remarkable step towards enhancing cross-border investment opportunities, presenting a promising avenue for global investors to tap into the innovative potential of China’s rapidly evolving sectors.